Ardent Leisure records 20% profit rise backed by improved FEC and theme park visits

Australian Stock Exchange listed Ardent Leisure has posted a 20% increase in its half year net profit to $22.6 million, once again driven by the expansion in its United States based Main Event division.

The group, which operates Goodlife Health Clubs; AMF and Kingpin Bowling facilities; d'Albora Marinas; and the Dreamworld, WhiteWater World and SkyPoint theme parks and attractions on the Gold Coast as well as the Main Event, reported an increase of $48 million (16.8%) in revenue from operating activities to $333.8 million.

However, the group's core earnings decreased by $1.6 million (5.1%) to $30.5 million.

Ardent Chief Executive Deborah Thomas said the group's Main Event division was looking for further opportunities to "accelerate the roll‐out."

Thomas explained “the most important point is that all of our centres developed since 2007 are on track to deliver an average annual (earnings before interest, tax, depreciation and amortisation) return on investment of over 35% reinforcing the enduring appeal of the Main Event entertainment concept.”

The group's theme park division recorded total revenues of $58.4 million for the half year up from $54.8 million in the previous corresponding period. However EBITDA margin slipped slightly to 36.3% from 37.2%.

Attendance at the group’s Gold Coast theme parks rose by 13% but per capita spending also slipped to $46.9 from $49.8.

Thomas added "the division will focus on innovation and leveraging existing partnerships with leading global and local entertainment brands.”

With Chinese entertainment and real estate giant Dalian Wanda having announced plans to build a new theme park on the Gold Coast, mainstream media have speculated that Ardent Leisure is a “potential though reluctant seller” of its Dreamworld/WhiteWater World location.

For more information go to www.ardentleisure.com.au

Images: WhiteWater World (top) and the recently opened Darwin Kingpin FEC (below).

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